Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Gold has turned down in both the euro and the dollar, fixing in London at $1,364.50 and in the euro at €1,011.71. As the euro strengthens against most currencies, we see the dollar as holding its own against the other leading world currencies. After the fears of the past few weeks for the euro and the Eurozone, we are watching a relief recovery because the Eurozone is still intact. As New York opened the gold price fell further to $1,354.60 or €1,005.78
Apart from covering the gold and silver markets Gold Forecaster and Silver Forecaster are structured in a way that gives perspective to macro-economic factors from oil to currencies covering the pertinent global gold markets that directly affect the gold price and some that simply influence it. It is a “must-read” for all who want to understand why the gold price is moving as it is and why. It also aims to help you understand why currencies and today’s national economic problems are influencing the global economy and the precious metal prices [we cover platinum in the Silver Forecaster too]. Subscribe at www.GoldForecaster.com or for silver at www.SilverForecaster.com].
Gold – Very Short-term
Gold’s risk has increased again after today’s fall in New York. It is moving to a point where we expect a strong move either way.
Silver – Very Short-term
Silver’s risk has increased again after today’s fall in New York. It is moving to a point where we expect a strong move either way.
Gold Price Drivers
We will see rallies in currencies from time to time as we are seeing today in the euro. One has to be careful not to confuse the role of currencies though. As a “means of exchange” they will dominate because there is simply no other means of exchanging goods. As a “measure of value” currencies over time have been sadly lacking, despite the role of central banks to maintain price ‘stability’ [please note that this is not the same as reliable static value]. History demonstrates all too often that the slow and steady depreciation of currencies is an irresistible temptation for governments. That’s why the difference between the buying power of currencies in the last fifty years has dropped so much. By attempting to treat gold as a commodity or barbarous relic and restrain its price, governments and central banks distract the investing and general public from the steady decay of value that is inherent with a paper currency system. This is seen clearly over the longer term but not so clearly short-term. In the last decade we have seen the value of gold rise or should we say the value of currencies fall against gold.
With so many diverse nations with different interests, gold is finding a measure of freedom that it did not have under dollar hegemony. With the advent of the Chinese Yuan onto the global monetary stage we should see that freedom expand and gold serve a more accurate function as a “measure of value.”
We are issuing a series on “The Financial Earthquake” that lies ahead in the years to come, in our newsletters in the weeks to come alongside our forecasts for the factors that affect the gold price. We are about to issue our forecasts on the Chinese Yuan and on Chinese gold demand. We suggest you subscribe to the Gold Forecaster and Silver Forecaster where you can read these. It is there that we will we will detail all the factors that will join to jeopardize the global economic landscape in 2011, keep you in touch with their progress in 2011.
